The Globalization Of Cemex 2 Case Study Solution and Analysis
Intro
The Globalization Of Cemex 2 Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, The Globalization Of Cemex 2 Case Study Help has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the changing macro market trends and forces bring particular difficulties to the publishing industry in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Globalization Of Cemex 2 Case Study Analysis has particular strengths that can be made use of to reduce the risks, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of The Globalization Of Cemex 2 Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong financial position allows the company to think about a number of development chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has particular weaknesses which might increase constraints for the company in implementing its development program. The weaknesses of The Globalization Of Cemex 2 Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose specific growth strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is declining given that 2008, impacting The Globalization Of Cemex 2 Case Study Help as well, however the growth might be restored by availing certain opportunities presented in the market. The market chances for CMP include;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its large funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing market has actually posed certain threats to The Globalization Of Cemex 2 Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of The Globalization Of Cemex 2 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific strategies like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the industry together with existence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP might not be determined. It could be examined from the Appendix III that the annual total profits of The Globalization Of Cemex 2 Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the business is quite effective in attracting a large number of customers at a prospective rate.
Along with it, the second chart which shows the yearly growth in the The Globalization Of Cemex 2 Case Study Analysis overall possessions, shows that the company is rather effective in adding worth to its properties through its earnings. The growth in possessions reveals that the overall value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis relating to the distribution of overall incomes of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business segments with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the performance of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. Therefore, it could be stated that the total political forces impacting The Globalization Of Cemex 2 Case Study Analysis company are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the The Globalization Of Cemex 2 Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the financial policies related to the import of books impact the total company at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting The Globalization Of Cemex 2 Case Study Analysis consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Federal government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing industry. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute items for the published files is the documents provided in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the The Globalization Of Cemex 2 Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of The Globalization Of Cemex 2 Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the same duration, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks third and second in different market sectors, with a major concentrate on educational publications. CIP functions as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Globalization Of Cemex 2 Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as The Globalization Of Cemex 2 Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are moving towards digital publishing and the business require an immediate service to prevent the decreasing market development. Intro of digital publishing might show to be an immediate service with low amount of risk for the business. However, the business might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business needs to initially gathers the data connected to the consumer demand, the possible markets, the federal government policies and the data connected to the competitors presented in the market. After that, the business must choose one potential section for its initial offering. It ought to gather research that how it might differentiate its digital publishing from the existing competitors' items. After all the actions above the business ought to choose the preliminary offering. If the preliminary offering shows a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing since 2008, revealing a risk to the company's long term presence, however the situation can be managed by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
